A view
from a not so senior citizen regarding the job market still open to
them needs further discussion among the human resources department of
companies and law makers. This group of employees usually comprise
those between 40 to 50 years old. They have the work experience but
due to circumstances might be the first to be let off if a company is
trying to cut down costs or in the process of merging with another
company.
They have already reached
the higher salary category and letting go of employees in this age
group is considered a pragmatic move by employers in order to reduce
the operating costs. Some of them opted for early retirement as they
realise they will be redundant sooner or later when a company is
going through a merger and acquisition exercise. No prudent company
would want two employees doing exactly the same job and both
receiving high salaries. One of them would definitely has to be laid
off.
This group will be caught
in a bind if the Employees Provident Fund aligns the final withdrawal
from the fund with the new retirement age. As it is, quite a number
of people are looking forward to withdraw their EPF funds when they
reach 55 so as to embark on different projects during their
retirement years. Most probably we will see an ever-increasing
retirement age considering the trend of higher life expectancy among
the working population. This would be beneficial as all resources are
needed in order to reach the aim of being a developed nation by 2020
and maintaining that status beyond that particular year.
The not so senior at the
moment are not the most sought after employees once they are out the
job market. Their experience and higher last drawn salary is a
setback even if they are willing to take a pay cut. Employers take
the easy way out in reducing costs by hiring younger inexperienced
employees who definitely would not mind a smaller starting pay. This
is an advantage in the short term and will show positive results in
the accounts but the time spent to train someone and the mistakes
they make might be costly and not worth the savings gained in the
beginning.
Yes, we do need to think
how best to use the experience of the not so seniors as they can
still contribute to the company's bottom line.
Image from thinkplaninvest
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